Group 1 Automotive (NYSE:GPI) Shares Gap Down – What’s Next?

Shares of Group 1 Automotive, Inc. (NYSE:GPI) gapped down prior to trading on Wednesday . The stock had previously closed at $458.81, but opened at $440.00. Group 1 Automotive shares last traded at $445.53, with a volume of 37,034 shares trading hands.

Analysts Set New Price Targets

GPI has been the subject of a number of research analyst reports. JPMorgan Chase & Co. lowered their target price on Group 1 Automotive from $425.00 to $420.00 and set an “overweight” rating for the company in a report on Friday, January 17th. StockNews.com raised shares of Group 1 Automotive from a “sell” rating to a “hold” rating in a research report on Friday, November 8th. Jefferies Financial Group assumed coverage on Group 1 Automotive in a research report on Friday, December 13th. They set a “buy” rating and a $500.00 price objective on the stock. Guggenheim boosted their target price on Group 1 Automotive from $420.00 to $442.00 and gave the stock a “buy” rating in a research note on Thursday, November 21st. Finally, Stephens restated an “equal weight” rating and set a $460.00 price target on shares of Group 1 Automotive in a report on Thursday. Two equities research analysts have rated the stock with a hold rating and five have issued a buy rating to the stock. Based on data from MarketBeat, the stock has an average rating of “Moderate Buy” and a consensus price target of $447.83.

Group 1 Automotive Trading Up 2.8 %

The company has a current ratio of 1.00, a quick ratio of 0.24 and a debt-to-equity ratio of 0.91. The firm has a market cap of $6.15 billion, a PE ratio of 12.57 and a beta of 1.36. The business has a fifty day moving average price of $430.63 and a 200 day moving average price of $385.78.

Group 1 Automotive (NYSE:GPI) last announced its quarterly earnings results on Wednesday, January 29th. The company reported $10.02 EPS for the quarter, beating the consensus estimate of $8.77 by $1.25. Group 1 Automotive had a net margin of 2.47% and a return on equity of 18.25%. Analysts forecast that Group 1 Automotive, Inc. will post 40.37 EPS for the current year.

Group 1 Automotive Dividend Announcement

The company also recently disclosed a quarterly dividend, which was paid on Monday, December 16th. Shareholders of record on Monday, December 2nd were issued a dividend of $0.47 per share. This represents a $1.88 annualized dividend and a dividend yield of 0.41%. The ex-dividend date of this dividend was Monday, December 2nd. Group 1 Automotive’s payout ratio is 5.12%.

Group 1 Automotive announced that its Board of Directors has initiated a share repurchase plan on Tuesday, November 12th that permits the company to repurchase $500.00 million in shares. This repurchase authorization permits the company to repurchase up to 9.3% of its shares through open market purchases. Shares repurchase plans are generally an indication that the company’s leadership believes its shares are undervalued.

Insider Buying and Selling

In other Group 1 Automotive news, VP Edward Mckissic sold 79 shares of the company’s stock in a transaction that occurred on Tuesday, November 5th. The stock was sold at an average price of $374.01, for a total transaction of $29,546.79. Following the completion of the sale, the vice president now directly owns 6,259 shares of the company’s stock, valued at $2,340,928.59. This represents a 1.25 % decrease in their position. The transaction was disclosed in a legal filing with the Securities & Exchange Commission, which is available at the SEC website. Also, Director Lincoln Pereira sold 6,000 shares of the business’s stock in a transaction that occurred on Monday, December 16th. The shares were sold at an average price of $426.68, for a total value of $2,560,080.00. Following the completion of the transaction, the director now directly owns 98,467 shares in the company, valued at approximately $42,013,899.56. The trade was a 5.74 % decrease in their position. The disclosure for this sale can be found here. 1.70% of the stock is currently owned by company insiders.

Hedge Funds Weigh In On Group 1 Automotive

A number of hedge funds and other institutional investors have recently bought and sold shares of the company. R Squared Ltd acquired a new stake in Group 1 Automotive in the fourth quarter valued at $30,000. Assetmark Inc. lifted its position in Group 1 Automotive by 51.9% during the third quarter. Assetmark Inc. now owns 82 shares of the company’s stock worth $31,000 after buying an additional 28 shares during the period. Harbor Capital Advisors Inc. acquired a new position in Group 1 Automotive during the third quarter worth approximately $36,000. Avior Wealth Management LLC purchased a new stake in shares of Group 1 Automotive during the 3rd quarter valued at $46,000. Finally, GAMMA Investing LLC raised its holdings in shares of Group 1 Automotive by 70.4% in the 4th quarter. GAMMA Investing LLC now owns 121 shares of the company’s stock worth $51,000 after purchasing an additional 50 shares during the period. 99.92% of the stock is currently owned by hedge funds and other institutional investors.

Group 1 Automotive Company Profile

Group 1 Automotive, Inc, through its subsidiaries, operates in the automotive retail industry in the United States and the United Kingdom. The company sells new and used cars, light trucks, and vehicle parts, as well as service and insurance contracts; arranges related vehicle financing; and offers automotive maintenance and repair services.